Difference between Crypto coins and Crypto tokens
Difference between crypto currency coins and crypto tokens Before a crypto currency is launched and released to the public it has to go through Initial Coin Offering. This is the process in which a company which want to release a crypto currency raise money through selling their tokens to the public promising their customers that this coin will increase in value when launched and some are distributed through airdrops so as to create awareness and demand.
**What is a crypto coin?**
These are decentralized crypto coins which are run on standalone blockchain and can be mined. They represent money and are a medium of exchange. They have different features, some are secure crypto coins which safe keep the transaction details of the sender and are untraceable but some are not they are just transparency ordinary coins. They have no other special uses they are just used for making payments and storing value.
**What are Crypto tokens?**
These are Ethereum Request for comment tokens popularly known as ERC-20, they are different to the crypto coins in the sense that these do not represent money but they have broader functionalities they do not have standalone blockchain like others but they run on existing Ethereum blockchain and they even use Ethereum addresses when sending and receiving. These cannot be mined like other crypto coins but they are stacked and they use proof of stake while crypto coins use proof of work.
**Advantages of tokens**
Tokens rely on existing blockchain and they take full advantage of those blockchain. Since they rely much on those it make them stable and their prices are likely to keep on rising e.g. smart contracts are now the preferred digital agreement so this is another reason which makes tokens stable and valuable. They also work as digital store of security information.
**Disadvantage of token**
Ethereum tokens rely and benefit from the Ethereum technology and this makes them stable and strong but however to a greater extent this is a potential disadvantage in the long run. Coins which rely their future on running project projects or exchangers and are fully backed by those, what do you think will happen if the backing exchanger is closed down or if the backing project has failed. Automatically those coins will crush to zero and you will lose your money.
**Conclusion**
The capability of token for performing different tasks makes them of great use, at some time digital currency crypto currencies might not be a preferred method of payment due to the fact that they are volatile and their value is not stable it can change any time and this is no favorable when it comes to business so this leaves tokens with a better margin as they have so many capabilities.
Forex and Crypto Trading strategy
If you really want to make money in the crypto market, you have to prepare your trading plan and then trade your plan that’s how you survive in the markets. Remember failing to plan is planning to fail so you have to make sure you really know what you are going to do on your trading day and don’t just do things you are not sure of.
Crypto and Forex trading is like a war its either you win or you lose, so when you make a loss some is making profit on your losses. Some people trade expecting not to lose but instead they are supposed to trade with intention of winning. Everyone want to make profits but not everyone knows how to do that. I am going to share a few tips with you on how to make money.
What to know first You should clearly understand what you are venturing into so that you don’t make premature and poor decisions.
After you are done with selecting your crypto exchange trading platform this is a list of things you should do first:
Identify assets to trade
Check demand and supply
Know trading levels and then execute trades
**Identify assets to trade**
Identifying your assets is the first thing to do, the crypto market is made up of stable coins, volatile coins and less volatile coins so first identify the type of coins to trade. Don’t make a mistake of selecting stable coins expecting to make money, they don’t move. After selecting your coins then check how many points/pips they move per day so you will be able to know which moves to trade and for how long.
**Check demand and supply**
The law of demand and supply really works when trading the crypto market. You should identify the demand levels and this is where the price goes up and identify the supply levels as well, these are level where orders are being offloaded.
**Know trading levels and execute trades**
After you have identified the supply and demand levels, those are your trading level. First go at the demand zone level and buy your crypto, because of demand the price will go up and wen the price hits the supply zone then dispose your position and take profit and look for another entry opportunity.
**Conclusion**
Always check volumes first before placing orders and avoid buying crypto currency that have low volumes because they are not liquid therefore you will not make any money. I used to struggle at first and when I mastered this strategy my trading lifestyle changed and I am now a better trade and lastly make sure you use well regulated exchanger so that you won’t lose your money.
Ethereum will conquer the crypto Market
Ethereum is a decentralized crypto currency released in 2015 and is currently ranked number 2 with a market capitalization of $25 billion, it’s the second largest from bitcoin. With is supply of 111 million you might think that it will affect its price and value as it seems like it’s too much but well it’s not only supply which determines how the crypto currency coin gain value.
We are going at some factors which determines the success of a crypto currency.
**How is demand created?**
Demand is what every crypto currency need for it to make it in the market and that determines its dominance or survival amongst other coins. Demand and supply has to be well balanced, there shouldn’t be too much supply if the demand is low as this will dilute the value of the crypto currency, but on the other hand supply plays a role in stabilizing the price.
The crypto currency has to be well marketed and introduced to the market so as to create awareness then after its know a lot of work has to be done to make the coin more powerful e.g. making sure its accepted as a payment method and other services.
**How Ethereum manages to create a huge demand?**
Mostly all crypto currencies would like to accept as a digital payment method by merchants, but with a lot of competition there should be a diversification of different methods because almost every currency they work on faster transaction confirmation and security mostly, but with every coin with those features the probability of being the preferred one will be low. Ethereum did not just rely on being accepted as a payment method instead they went further with its powerful blockchain and these following are now its major forces:
•Smart contracts
• Tokens
• Dapps Smart contracts.
Smart contract are agreement signed between two parties and they are signed digitally and stored on the public blockchain and Ethereum blockchain is the mainly used blockchain.
**Tokens**.
Today there are various token being introduced on the market and a lot of them are running on the Ethereum blockchain, the ethersan.
**Dapps**.
Developer are creating applications known as Dapps and they are also based on the Ethereum blockchain and they are for signing contracts as well. Amazon an online merchant is now accepting Ethereum as a payment method and a lot of companies have adopted Ethereum and its products.
**Conclusion**
So with all these Ethereum has proved to becoming more powerful against other crypto currencies and soon it will be the leading currencies since it has so much to do which create more demand in return. Bitcoin and others might be good crypto currencies but Ethereum is about to get on top of the stairs.
Why binance coin (BNB) is a good-investment
Putting your money in an investment is something you have put some critical thinking onto before you do anything in a rush. Some investment are just not worth it and if not careful you will be fool and enticed into buying worthless crypto currencies. A good crypto currency is something that is well adopted and has higher chances of growing further in value as a result of its demand in the market.
Binance coin also known as BNB is a crypto currency which we are going to look and see how good and profitable it can be?
**What is BNB coin?**
It is a BEP2 token which was released in 2017 and it was running on the Ethereum blockchain but it later changed from being an ERC-20 token and is now running on Binance chain and no longer run on Ethereum blockchain. It is used for shopping on online merchants and is used for paying trading fees when sending AWC-986 on Atomic wallet and on the Binance exchanger as well. From 2017 is has grown and is gaining recognition and managed to reach an all-time high price of $39 in 2019 yet when it was released it has risen from its low price of $0.10 with a capitalization of $10 million and to date has managed to get its self in the top 10 on the market.
**How to get BNB?**
It uses Proof or Work and cannot be mined and validators are paid for staking their BNB coins. Another way of earning BNB coin is through trading it on exchangers e.ge on binance.com or on Binance Dex you can trade it against other crypto currencies or you can buy it using wire transfers or through credit cards.
Other BNB feature
**Trust**
BNB crypto currency was released by a well trusted crypto currency exchanger binance.com and has been there so some time and has offered great quality services to its clients, therefore BNB token has benefited from this and is very well trusted amongst other crypto.
**Fast transactions**
Almost every crypto currency now thrives to make their coin beat other coins when it comes to faster transactions therefore being fast is now just an added advantage to the BNB, it processes its transactions faster that’s why it’s used by merchants online.
**Liquidity**
Liquidity is an important factors as coins which are liquid are the most favorable because you will not go through hard times trying to dispose your coins. BNB coins on daily basis it produces turnovers of approximately $160 million which makes it very liquid and therefore higher chances of going higher.
Conclusion
If you had so much doubts on the BNB token like I used to, you better have second thoughts. I later on researched on it and I found great things about it and it possibility to make you rich. It has great features and is worth investing on.
Stable Coins: Review
Stable coins are another version of crypto currency, they serve a different purpose from the ordinary crypto coins we are used to. The total number of stable coins in circulation are backed by fiat money or commodities, therefore they have certain advantages and disadvantages which we are going to be looking at:
Advantages
Not volatile – These coins were created with the intentions to reduce volatility. They don’t move that
much like other crypto e.g. Bitcoin, so they maintain their value.
No Restrictions – They can be sent through the internet anywhere in the world and cannot be stopped.
Cheap – They are cheaper to transact with as compared t other crypto coins.
Disadvantages
Centralization – They are said to be decentralized but somehow some of them they are centralized because they are controlled by certain companies.
Backed – These coins are backed by either fiat money or commodities which means their future is dependent on things which back them. If the financial markets crush then backed stable coins are vulnerable.
Stable coins might be good enough provided that the outside economic factors are on the right channel because a fall in those factors will have an impact on the value of stable coins since they are backed, but for the mean time they are the perfect coins for maintaining value.
Stable Coins
STABLE COINS: Review
Stable coins are another version of crypto currency, they serve a different purpose from the ordinary crypto coins we are used to. The total number of stable coins in circulation are backed by fiat money or commodities, therefore they have certain advantages and disadvantages which we are going to be looking at:
Advantages
Not volatile – These coins were created with the intentions to reduce volatility. They don’t move that
much like other crypto e.g. Bitcoin, so they maintain their value.
No Restrictions – They can be sent through the internet anywhere in the world and cannot be stopped.
Cheap – They are cheaper to transact with as compared t other crypto coins.
Disadvantages
Centralization – They are said to be decentralized but somehow some of them they are centralized because they are controlled by certain companies.
Backed – These coins are backed by either fiat money or commodities which means their future is dependent on things which back them. If the financial markets crush then backed stable coins are vulnerable.
Stable coins might be good enough provided that the outside economic factors are on the right channel because a fall in those factors will have an impact on the value of stable coins since they are backed, but for the mean time they are the perfect coins for maintaining value.
What makes Bitcoin Cash better than Bitcoin when transacting
Well Bitcoin is the ancient crypto currency and at was created in 2009 with a value of $0.02 per. It is used for online transactions and the transactions history can be seen on the blockchain.
Then in 2017 a new crypto coin by the name Bitcoin Cash was given birth to as a result of hard fork of bitcoin. It is the improved version of bitcoin and we are going to check whats makes it better than bitcoin.
Faster Transactions - BCH increase its block size therefore transactions can be completed at a lightning speed as compared to bitcoin. Bitcoin takes time to confirm transaction on the blockchain which makes it a big disadvantage to use it a a payment method when transacting online
Cheap transactions costs - transaction cost on BCH are far much cheaper than BTC, it cost about $0.18 per transaction so merchants wont have to incur unnecessary transaction cost as it will force then to pass the cost to end users by increasing their prices in order to meet their transaction cost.
So if you want to consider accepting cryptocurrency as payment method then Bitcoin cash is th way to go as it is cheaper and has a faster network.
@drmudpro